#593 · Tax Tool

Federal Basis Calculator

Calculate adjusted basis, basis changes, and break-even sale value for a property, asset, or investment using purchase cost, improvements, depreciation, and fees.

Calculator

Basis inputs
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How to use this calculator

  1. Enter the requested federal or state tax values.
  2. Use your own rates, credits, deductions, payments, or sale values.
  3. Click Calculate to see the estimate, status, and supporting metrics.
  4. Use scenarios and related calculators to compare federal and state planning assumptions.

What the result means

The adjusted basis estimate can help calculate gain or loss when an asset is sold. Improvements increase basis, while depreciation reduces basis.

Adjusted Basis = Purchase Cost + Improvements - Depreciation; Break-Even Sale Value = Adjusted Basis + Selling Fees

Basis rules can be complex. This calculator uses only the values entered and should not be treated as tax advice.

Example calculation

For a $200,000 purchase, $30,000 improvements, $15,000 depreciation, and $8,000 fees, adjusted basis is $215,000 and break-even sale value is $223,000.

Tips for better results

  • Track improvement costs separately from routine repairs.
  • Keep depreciation records because they can reduce adjusted basis.
  • Include selling fees when estimating break-even sale value.

FAQ

What is adjusted basis?

Adjusted basis is the purchase cost adjusted by increases such as improvements and reductions such as depreciation.

Do improvements increase basis?

In this calculator, improvements increase the estimated adjusted basis.

Does depreciation reduce basis?

Yes. Depreciation is subtracted from the estimated basis.

Why does basis matter?

Basis helps estimate gain or loss when an asset is sold.

What is break-even sale value?

It is adjusted basis plus selling fees in this simplified estimate.

Basis change summary

ItemEffect
ImprovementsIncrease adjusted basis.
DepreciationReduces adjusted basis.
Selling feesRaise break-even sale value.

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